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Biden had to abruptly scrap his trip to Jordan for a meeting with leaders of Jordan, Egypt and Palestine after the Palestinian Authority cancelled the summit.
The heavy bombing at Ahli Arab hospital in cental Gaza has left more than 200 dead. The toll is feared to go as high as 500.
Israel have made no effort to ensure the civilians evacuated in Gaza were provided with proper accommodation, food and other satisfactory conditions.
Rafah, which is on the border between Egypt's Sinai Peninsula and Hamas-governed Gaza, is the only crossing into the territory not controlled by Israel.
Meanwhile, the Israeli military said it would continue to allow Gazans to evacuate south ahead of an expected ground assault by its forces on the Gaza Strip.
Israeli military urged civilians in northern Gaza, where Hamas's leadership is based, not to delay in getting out.
Israeli ground forces made 'localised' raids into Gaza in the last 24 hours.
The United Nations said it considered it impossible for such a movement of people to take place 'without devastating humanitarian consequences.'
'As long as America exists... we will always be there by your side,' Blinken told Netanyahu.
A 45-member group of Malayalis had set out for a pilgrimage of the Holy Land on October 3.